Car Reaffirm...need a guru!

[Teddy]

So are you going to keep it or surrender it?

My CU did tell me the car will not be repo'd unless I am late. So, I guess I don't have to sign the reaffirmation. She also said that when they get the signed reaffirmation that the CB reporting doesn't change.

The only thing I can see as a benefit, which probably really isn't a benefit - would be that I can schedule to do skip-pays which can be nice if you are in a pinch, but it just adds more time on to your loan which is not so smart.

I think HMM is definitely right on the credit, once I'm done I'm going to try & get a credit card or 2 and use them and pay them off. I haven't really been to the rebuilding credit forum since I'm not there yet.

[2confused]

I'm still not sure what to do, but i won't reaffirm. It seems as if i'm paying $450, what is the point, unless i plan on keeping it until the 26,000 balance is paid off. so, therein, lies the big question, do i want to keep it. perhaps i'll pay May and see what's out there after discharge? what do you think? If you think you might have difficulties making payments in the future, that is something to consider. definately, do not reaffirm. what do you mean the cu's cb reporting won't change? does this mean they won't report it as on time to cb's after discharge?

[Teddy]

I took it to mean that they would still continue to report as on time to the CB. I could be wrong though. I'm sure if I don't reaffirm (not planning on it now that she said car won't get repo'd) that they won't report, but I don't think it's that big of a deal.

I'm kind of in the same boat as you - I like my car, but I'm upside down it, but I doubt I could get anything better for the same payments once my interest rate would be 18-21% after BK.

I had a guy who specializes in BK loans & finding people cars tell me to keep mine and pay it off (which would be hard for me because it's a 2002 and I have 4 years left on the loan). That's the advice I've gotten here on this board too, so I guess it's probably the best advice I can get.

[2confused]

Can i talk to the guy?

[Teddy]

He's just a local dealer - my attorney gave me his name.

Do you want his number? I threw the card out but could probably find his name/number.

I'm in Indiana - if that matters.

[2confused]

it couldn't hurt but i wonder if that is "acceptable" on this forum?
I could probably do a search...i tried yesterday and it seemed very sketchy. my atorney gave me a name too, but for someone your attorney gave you tell you to keep it, he sounds honest...good old midwest (i'm from ohio but live in california)
yes, if it's not too much of a bother, it would be appreciated.

[JollyGG]

it couldn't hurt but i wonder if that is "acceptable" on this forum?

As long as you exchange this info by PM and are not actively soliciting other members with your dealers contact information there is no problem with passing the number along. Just be sure to do it in a private message.

[2confused]

thanks for info...

[CindyLou]

Now, I get home and look at it... he wrote that our income is 9,000 and our expenses are 12,500 and that this leaves $o to make payment (he also told me he wasn't going to lie and this is why he was writing whatever he wrote...which is funny, because i'm quite sure this gentleman (sarcasm) lies and does so regulary.

Hi 2confused,
Please do not take this the wrong way, but I wanted to ask, have you sat down and worked out a budget? If you are only bringing in 9,000 and your expenses are 12,500, you have a much bigger problem than your car payment!

What worries me more is that you seem to have not even known this until you read it on the paper that the attorney wrote this.

Bankrupty is a chance to start over and fresh. You are not even out of this and are already 3000+ in the hole.

I know this is one of my harsher responses. I usually try to be very gentle. But I wanted to be very straight forward on this one an hopefully open your eyes to what is going on.

I suggest that you sit down and look at your budget and see what you have going on at this point.

Again, this was written with the best intentions. Please do not take it the wrong way.

Best wishes,
Cindy

[2confused]

I'm not quite sure what you mean by $3000 in the hole. What the attorney is referring to is our $4000 mortgage, which we no longer have and are planning on trying to live within our means now. It's hard to completely budget because my husband is self employed and expenses change dramatically regularly. I don't take your emai as harsh...i appreciate your concern. We spent too much when the kids were little/daycare, etc...now housing market has crashed and we are stupid. My main question here is, should we continue paying on car or not. But feel free to ask any other questions.

[CindyLou]

so are your expenses now less than at least your husbands lowest month including the car?

If so then keep the car. If not then don't. You should be able to pay your bills on your worst month.

[danaf]

2confused - I really think you are making this situation bigger in your head than it really is, causing yourself undue stress.

Look, you were going to reaffirm which means you, at least for the meantime, were ok with your car payment of 450.

Now you find out it is not neccessary to reaffirm. The CU doesn't want your car. They want the $$$. They aren't going to give you the answer you want to hear simply because a reaffirmation works in their best interest (not yours or ours). They don't want that we can walk away from the loan at anytime after BK. Nevertheless - if payments are kept up, they have no reason to repo a car. It costs them money to do so.

Yes, your payments are high but you got a good interest rate. At this point in time, it is highly unlikely that you will find a better interest rate....being on the eve of BK.

Since you were fine with the payments - just keep the car for now but don't reaffirm. And see how it goes. If something happens in the future where you can't make those payments - you will be really happy you didn't reaffirm.

Just relax. You have the knowledge now and that is power. The CU, by telling us we must reaffirm or else is just pure BS.

[Teddy]

2confused - I think danaf said just what my car dealer said. He told me he doubted that I could get the same "amount" of vehicle for the same payment once my interest rate gets jacked up to 18-21%.

It was funny b/c we were talking about financing and he said to come over and somehow I said I had 8.25% interest and he said hold on!! You should just keep it and pay for it. 8.25% isn't great but by the time I find a car I'm going to be happy with and pay 18-21%, it's not going to benefit me to get a different car.

[2confused]

Thank you all. I'll keep it for now. My attorney gave me a number of a wholesale guy, if he can perform with a comparable car and an acceptable payment, then i'll make that move, but for now, i'll keep our car (that i love)
Teddy thanks for #...i'm still going to call. Danaf, thanks for calming me down...i'm doing better. cindy, yes, things are much more reasonable now, and unless mortgage co. gives us some kind of a great loan, we will be out of here upon foreclosure or whatever it is called, any ideas how long we'd get to stay.